Is the Dow Jones on its way to around $21,800 for a larger top?

Today’s post can be very brief and kept simple. Namely, the DOW JONES daily chart shows price already making new All Time High (ATH) closes, and thus (green) minor-5 is confirmed. A standard 5=1 relationship targets ~$21815, which is close to the ideal 2.000x major-1 target of $21,800. (Red) intermediate-iii also hit the 2.000x extension of intermediate-i; thus the same extension for major-3 appears rather logical.

Hence, this chart confirms the bullish view I have on the S&P500, which should reach the long term target of SPX2485-2505 for major-3 that my members have been well-aware off over the past months. Why that target zone? Because that’s around the 1.618x extension of Major-1, the 2.000x extension of intermediate-iii and the 1.764 to 2.000x extension of minor-1 for this most recent up wave (intermediate-v). All 3 are typical Fib-extension targets for 3rd waves, 5th of 3rd waves, and 5th of 5th of 3rd waves; respectively. When the Fib-extensions of waves of three different degrees align so well it’s prudent to pay attention.

Back to the DJI’s daily chart: all TIs are pointing up wanting to see higher prices. Price is above all simple moving averages; from the 5-day to 200-day and all are Bullishly stacked (5>10>20>50>100>200). All tells us to expect higher prices going forward. Once price gets close to the $21,800 level -and SPX2485- it will be prudent to re-assess the charts carefully for divergences, etc to tell us major-3 is indeed close to topping.

Figure 1. INDU daily chart: All systems pointing up: higher prices expected. Ideal target ~$21,800

INDU daily TI

2 thoughts on “Is the Dow Jones on its way to around $21,800 for a larger top?

  1. Pingback: S&P500 now on track for 2485-2505 target zone | INTELLIGENT INVESTING

  2. Pingback: S&P500 and Dow Jones update: a few more scribbles or not? | INTELLIGENT INVESTING

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